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Is it better to lease or finance a new car?

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3 minute read

There isn’t a clear-cut answer, because
each scenario has its own set of pros and cons and honestly, it really comes
down to your lifestyle and how you prefer to pay for things. Let’s compare
leasing with financing in a little more detail:

OWNERSHIP
Lease – The vehicle is titled in GM’s name, and at the end of term, you have the
option to purchase the vehicle or turn it in and lease a new one.
Finance – The vehicle is titled in your name, and you own the vehicle free and
clear after the terms of your purchase finance agreement are fulfilled.
DOWN PAYMENT
Lease – The down payment amount required for leasing varies based on the
lease transaction structure and monthly payment you desire, but in general,
is often lower than financing.
Finance – In some cases, the down payment amount needed for buying may be
higher when compared to leasing.
KILOMETER LIMITS
Lease – Kilometer limits (typically 20,000 or 24,000 yearly) apply as per your
lease agreement, and charges may be applied if these limits are exceeded.
Finance – No contractual limits on kilometers apply, however vehicle resale
values generally decrease as more kilometers are added.
MAINTENANCE/WEAR
Lease – You are required to service the vehicle as per GM’s maintenance
schedule and cannot make any changes to the vehicle’s appearance.
Finance – You can change the appearance of the vehicle, and select which
repairs to make, subject to the terms of the purchase finance agreement.
MONTHLY PAYMENTS
Lease – Monthly payments may be lower than financing the same vehicle, since
you only pay for the value of the vehicle during the term of the lease.
Finance – Monthly payments may be higher than leasing the same vehicle, as
the full value of the vehicle is paid over the term of the contract.
TAX SAVINGS FOR BUSINESS OWNERS
We have seen more and more businesses leasing vehicles to enjoy tax savings.
We recommend you speak to your accountant to see how you could benefit
from leasing your next vehicle.
In a nutshell, leasing makes it easier to get more car for less money, as you only
pay for the use of the vehicle for two or three years, instead of paying for the
vehicle itself. Financing, on the other hand, frees you from the restrictions
involved in leasing, such as mileage caps, and the vehicle is yours to do with as
you wish.
Have you ever wondered if you get more money by selling your car privately or
from trading it in at the dealership? Stay tuned for our next article.

Kipp Scott GMC Cadillac Buick is a family-owned business that has proudly served Red Deer, and all of Alberta, for over 50 Years since first opening our doors in 1968. Treating our customers with respect has always been our number-one priority, and we believe when it comes to selling vehicles, honesty is the best policy. Rest assured we’ll do everything we can to make sure you leave our dealership 100% satisfied.

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Automotive

Trudeau’s electric vehicle mandate could cause Canada’s power grid to collapse, analysis shows

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From LifeSiteNews

By Anthony Murdoch

Not only would the need to generate more electric power skyrocket, but prices and taxes would soar for consumers, a Fraser Institute study found.

A noted fiscally conservative think tank warned that a proposed federal mandate from the government of Prime Minister Justin Trudeau to ban the sale of new gasoline/diesel-only powered cars after 2035 and allow electric-only sales is an unrealistic fantasy that would cause massive chaos by threatening to collapse the nation’s power grids.

“Requiring all new vehicle sales in Canada to be electric in just 11 years means the provinces need to substantially increase their power generation capabilities, and adding the equivalent of 10 new mega-dams or 13 new gas plants in such a short timeline isn’t realistic or feasible,” said G. Cornelis van Kooten, a Fraser Institute senior fellow and author of “Failure to Charge: A Critical Look at Canada’s EV Policy.”

“Canadians need to know just how much additional electricity is going to be required in order to meet Ottawa’s electric vehicle mandate, because its impact on the provinces — and taxpayers and rate payers — will be significant.”

Van Kooten’s in-depth analysis of the impending electric vehicle (EV) mandate was released March 14 and estimates that to meet the 2035 target national electric generation would need to go up some 15.3% in only 11 years, which is a monumental task.

This would mean building no less than 10 new mega hydro dams nationwide, or at least 13 new large natural gas plants, according to Van Kooten. For those pushing so-called “green” power, that would mean some 5,000 new wind turbines, which all must still be backed up by natural gas peaker plants because of their unreliability when the wind is not blowing.

Given the length of time it takes to build a natural gas plant due to red tape, costs, and other factors, van Kooten observed that “the major obstacle relates to the likelihood of constructing sufficient power generating capacity to meet the anticipated demand EVs would impose on electricity grids.”

“The real-world situation is not as easy as merely replacing current ICE vehicles with EVs, and there are many obstacles to be overcome on the path of electrifying the personal vehicle fleets within Canada,” he said.

“The type of electricity that goes into the grid would also be a big consideration when switching over to EVs, as jurisdictions will need to increase their electricity production capabilities with green sources that meet the additional hourly load requirements and can be employed quickly to balance intermittent renewable energy sources.”

Van Kooten’s study looks at how much extra electricity will be required in all of Canada’s biggest provinces, Ontario, British Columbia, and Quebec to meet the 2035 EV mandate.

Trudeau plans to ban the sale of new gasoline-powered cars after 2035. The EU (European Union) also has an EV mandate in place for the same year.

Canadian Environment Minister Steven Guilbeault announced just before Christmas the “Electric Vehicle Availability Standard.” This is a plan that will mandate that all new cars and trucks by 2035 be electric, which would in effect ban the sale of new gasoline- or diesel-only powered vehicles after that year.

The reality is that electric cars cost thousands more to make and buy, are not suited to Canada’s cold climate, offer poor range and long charging times (especially in cold weather), and have batteries that take tremendous resources to make and are hard to recycle.

Just over a week ago, LifeSiteNews reported that a 2022 study found that electric vehicles pollute at a rate far higher than their gasoline or diesel-powered counterparts.

Not all Canadian provinces are on board Trudeau’s EV dictate

In January, LifeSiteNews reported that Alberta’s Minister of Energy criticized the federally funded Canadian Broadcasting Corporation (CBC) for publishing a report stating that electric cars are better able to handle cold weather than gas-powered ones, all at the same time an extreme cold snap gripped much of western Canada and nearly caused Alberta’s power grid to collapse due to its increased reliance on so-called renewable energy.

Alberta Premier Danielle Smith has promised that she intends to fight with “everything” at her disposal what she called an “unconstitutional” new federal government EV mandate as well as a net-zero power generation, which if implemented would lead to guaranteed power outages.

She noted that when it comes to Trudeau’s EV mandate, “Ottawa is trying to force increased demands on the electricity grid while simultaneously weakening Alberta’s and other provinces’ grids through their federal electricity regulations.”

Trudeau’s EV mandates have also been called out by the automotive industry in Canada. The Canadian Vehicle Manufacturers’ Association said in response to the new EV mandate that forcing people to buy EVs will “disproportionately impact households living in rural and northern communities that may have lower access to public charging infrastructure.”

 

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Automotive

High-tech cars are secretly spying on drivers, resulting in insurance rejections: NYT report

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From LifeSiteNews

By Claire Chretien

Many Americans’ driving habits are monitored without their knowledge or consent, and their driving data is being used to make decisions about insurance coverage and rates.

A lawsuit accuses General Motors of spying on a Florida man’s driving habits via his 2021 Cadillac XT6, resulting in his rejection by seven auto insurance companies.

The man, Romeo Chicco, is also suing LexisNexis, the company that shared his data with the insurance companies.

The New York Times reported:

Modern cars have been called “smartphones with wheels,” because they are connected to the internet and packed with sensors and cameras. According to the complaint, an agent at Liberty Mutual told Mr. Chicco that he had been rejected because of information in his “LexisNexis report.” LexisNexis Risk Solutions, a data broker, has traditionally kept tabs for insurers on drivers’ moving violations, prior insurance coverage and accidents.

When Mr. Chicco requested his LexisNexis file, it contained details about 258 trips he had taken in his Cadillac over the past six months. His file included the distance he had driven, when the trips started and ended, and an accounting of any speeding and hard braking or accelerating. The data had been provided by General Motors — the manufacturer of his Cadillac.

Chicco had downloaded the MyCadillac app, and “was eventually told that his data had been sent via OnStar — G.M.’s connected services company, which is also named in the suit — and that he had enrolled in OnStar’s Smart Driver program, a feature for getting driver feedback and digital badges for good driving.”

Another New York Times report explored the extent to which car manufacturers and insurance companies are able to access data about drivers: a man whose insurance rates increased by 21 percent learned that LexisNexis had “more than 130 pages detailing each time he or his wife had driven the [Chevrolet] Bolt over the previous six months. It included the dates of 640 trips, their start and end times, the distance driven and an accounting of any speeding, hard braking or sharp accelerations. The only thing it didn’t have is where they had driven the car.

As cars become increasingly high-tech, freedom and civil liberties advocates like Republican U.S. Rep. Thomas Massie of Kentucky have warned that such features may become weaponized. For example, a 2021 federal law mandates that by 2026 new cars have a “kill switch” by which they be disabled from afar – supposedly an anti-drunk driving measure. As LifeSiteNews has reported, manufacturers must put a system in cars that can “passively monitor the performance of a driver of a motor vehicle to accurately identity whether that driver may be impaired” and can stop or limit “motor vehicle operation” if “impairment is detected.”

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